In the light of the soaring "Make Poverty History" campaign launched in the UK by a coalition of over 100 international agencies, the Chancellor of the Exchequer Gordon Brown is pushing a proposal to freeze the debts of tsunami-hit countries.
On Tuesday, the finance minister Gordon Brown said, "What we are suggesting is an immediate moratorium on debt repayments from the afflicted countries."
"That would then lead to an analysis of the debt needs of these countries, with the possibility of some write-off of debt," he continued. He even said that countries like Sri Lanka should be added to the list of nations that should get 100 percent multilateral debt relief because of the enormous scale of problems it faces after the tsunami.
Sponsorship from the International Monetary Fund and the World Bank for emergency assistance and reconstruction in affected countries has also been introduced as two other back-up proposals for the moratorium, according to the British Finance Minister.
Assuming the UK’s presidency of the G8 group of industrialised countries and the EU in 2005, Brown had already pointed out in December that 2005 is the "make or break year for development" for world poverty.
Currently, Brown’s proposals are being backed by the US, and discussions are under way with various other countries including France, Germany, Italy and Japan.
Brown also emphasised that the humanitarian aid demand of Africa should not be overlooked because of resources being diverted to the tsunami victims.
Oxfam's Phil Bloomer welcomed the moratorium plan, saying it would be "unforgivable" to continue to demand debt repayments. He said it was vital the money saved was ring-fenced so it reached those most in need.